Cyber security company, Palo Alto, plunges almost 25% today. The company reported 2nd quarter earnings of $0.63 per share on revenue of $422.6 million. The consensus earnings estimate was $0.62 per share on revenue of nearly $430 million.
This slight miss is not what rocked the stock. The company said it expects third quarter earnings of $0.54 to $0.56 per share on revenue of $406.0 million to $416.0 million. Since the future forecast didn’t line up with what analysts thought, the stock tanked.
This, however, is not all bad. The current (PANW) price is now very attractive. The company is still a leader in the cyber security field. I myself am going to pick up some shares when it stops dropping to average my cost.
There is talk of Palo Alto being purchased by a bigger security company. If this is true it could also shoot the price up to recent high levels.
This small hiccup in the company should be corrected very soon by strong performance. With a Trump lead presidency in place I am confident that physical and cyber security will be a top United States priority that drives up this sector of the market.